The Italian Banking Association (ABI) supports the European Central Bank’s (ECB) digital euro project with one key request: to spread implementation costs over a longer time frame.
Italian banks have expressed their backing for the ECB’s plan to introduce a digital euro, but with the condition that the required investments for implementation be distributed over time. The statement came from Marco Elio Rottigni, Director General of the ABI, during a press conference reported by Reuters.
The Italian banking sector views the digital euro project positively. However, Rottigni emphasized that the initial costs needed to adapt banking infrastructure are significant, which is why the ABI is calling for a gradual approach to investment.
According to Rottigni, support for the initiative is rooted in the belief that the digital euro “embodies a concept of digital sovereignty” that is crucial for Europe’s role in the global financial landscape.
Launch planned for 2029
In recent months, the ECB has taken further steps toward the realization of the digital euro. EU finance ministers, together with ECB President Christine Lagarde and European Commissioner Valdis Dombrovskis, have reached a compromise agreement on how to move forward with the initiative.
The roadmap includes:
- adoption of EU legislation in 2026;
- pilot phase of the digital euro in 2027;
- official launch scheduled for 2029.
The agreement stipulates that finance ministers will have a say in the final decision to issue the digital euro and in determining the maximum amount each EU citizen can hold.
A twin-track approach
The ABI proposes a dual strategy to ensure Europe remains competitive in the digital currency space. Rottigni stressed the importance of developing both a central bank digital currency (CBDC) and commercial bank digital currencies in parallel.
“We’re in favour of a twin approach, a central bank digital currency and commercial bank digital currencies which may develop faster, because what Europe shouldn’t do is fall behind. Costs for the project, however, are very high in the context of the capital expenditure banks must sustain. They could be spread over time”, Rottigni said.
Resistance to the project
Despite Italy’s support, the digital euro plan continues to face resistance from parts of the European financial sector. The German Banking Industry Committee, the country’s main banking lobby group, has voiced skepticism about the project.
In addition, conservative MEP Fernando Navarrete has raised objections, suggesting a scaled-down version of the digital euro. In his view, the digital currency should be used mainly for offline payments, excluding real-time transactions and wholesale payments between financial intermediaries.
